Tencent Holdings, operator of China’s biggest social media app and the world’s largest gaming business by revenue, reported a profit decline for the third quarter of 2023 that was still better than market estimates, as the country’s economic recovery continued to face pressure, reports the South China Morning Post. The Hong Kong-listed internet giant posted a profit of RMB 36.2 billion ($5 billion) for the three months ended September 30, down 9% from RMB 39.9 billion a year ago. That exceeded the consensus estimates of RMB 32.4 billion by analysts polled by Bloomberg.
Total revenue in the quarter reached RMB 154.6 billion, up 10% from RMB 140.1 billion a year ago. That was slightly worse than the consensus estimates of RMB 154.8 billion, according to analysts polled by Bloomberg.
“During the third quarter of 2023, we achieved solid and high-quality revenue growth, notable margin expansion, and structural operating leverage,” said Pony Ma Huateng, founder and chief executive of Tencent Holdings.